urban-gro, Inc. Regains Nasdaq Compliance and Appoints New Independent Auditor

urban-gro, Inc. (NASDAQ: UGRO) has issued a significant update regarding its listing status and auditor changes, which could have material implications for shareholders and the company’s share price.

Key Points from the Report

• urban-gro, Inc. has regained compliance with all Nasdaq listing requirements, including Stockholders’ Equity, Annual Meeting, and Timely Filing Requirements.
• The company appointed a new independent auditor, Suri and Co., Chartered Accountants, effective March 3, 2026.
• urban-gro, Inc. had previously faced multiple Nasdaq notices and potential delisting threats due to non-compliance with several key rules:
  • Failure to maintain the minimum bid price (\$1.00 per share) for 30 consecutive business days.
  • Delays in filing the 2024 Annual Report and Quarterly Reports for March, June, and September 2025.
  • Failure to maintain minimum stockholders’ equity of \$2.5 million.
  • Failure to hold an annual meeting within the required time frame.
• urban-gro’s former auditor, Sadler, Gibb & Associates, LLC, was dismissed. They confirmed there were no disagreements or reportable events with the company.
• As of March 4, 2026, Nasdaq confirmed urban-gro, Inc. is again in full compliance, eliminating the risk of imminent delisting.

Details for Shareholders

The report highlights a period of significant risk for urban-gro, Inc. Throughout late 2025 and early 2026, the company was flagged by Nasdaq for multiple deficiencies, including:

• Stock Price Non-Compliance: The company’s stock traded below \$1.00 per share for over 30 consecutive days, triggering a deficiency notice under Nasdaq Listing Rule 5550(a)(2).
• Delayed SEC Filings: urban-gro failed to timely file its 2024 Annual Report and three subsequent Quarterly Reports, causing further compliance issues under Nasdaq Listing Rule 5250(c)(1).
• Stockholders’ Equity Requirement: The company fell below the \$2.5 million minimum equity threshold (Rule 5550(b)(1)).
• Annual Meeting Requirement: urban-gro did not hold its required annual shareholder meeting within twelve months of its prior fiscal year end (Rule 5620(a)).

Each of these deficiencies carried the risk of delisting from the Nasdaq Capital Market, which could have severely impacted shareholder value and the company’s ability to access capital markets.

After attending a Nasdaq Hearings Panel in October 2025, urban-gro was granted several extensions to regain compliance. The company met all required conditions by February 2026, and on March 4, 2026, Nasdaq officially notified urban-gro that it had cured all deficiencies and its shares will remain listed.

Change in Independent Auditors

On March 3, 2026, urban-gro appointed Suri and Co., Chartered Accountants of Chennai, India, as its new independent auditor for the fiscal year ended December 31, 2025. The previous auditor, Sadler, Gibb & Associates, LLC, provided a letter to the SEC confirming there were no disagreements or reportable events during their tenure and that they agreed with the company’s statements about their dismissal.

Notably, during the two most recent fiscal years and subsequent periods prior to Suri’s appointment, neither the company nor anyone on its behalf consulted Suri regarding any accounting principles, audit opinions, or reportable events. This suggests a clean transition with no outstanding audit issues.

Potential Share Price Impact

• Nasdaq Compliance Restored: Regaining compliance eliminates the immediate risk of delisting, which is highly price-sensitive and should be viewed as a positive development by existing and potential investors.
• Auditor Change: While a change in auditors can sometimes raise concerns, the smooth transition and absence of disagreements reduce the risk of negative interpretations. The appointment of an international firm may signal a new phase for urban-gro and could attract attention from a broader investor base.
• Governance and Transparency: The company’s ability to address and resolve multiple compliance issues demonstrates management’s responsiveness and commitment to maintaining its public listing, which could restore or boost investor confidence.

Conclusion

urban-gro, Inc. has averted potential delisting by rapidly addressing multiple compliance issues with Nasdaq standards. The company is now in good standing, having appointed new independent auditors and satisfied all regulatory requirements. These developments are critical for shareholders and could have a material impact on the stock price and investor sentiment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions. The author and publisher take no responsibility for any investment actions taken on the basis of this article.

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